issue as well. mcdonald's isn't very flexible because they're so heavily franchised and often difficult in implementation. >> my sources tell us they're facing stiff competition for burger king. >> and wendy's and dunkin' donuts. >> for a new rib sandwich. alix steele will be back with more. "money moves" up next. . ♪ >> welcome to "money moves." i am deirdre bolton. we show you what investors and entrepreneurs are doing, as well as what is going on in hedge funds, private equity, real estate, and more. today, privacy and security, two subjects addressed in a later -- latest nsa report. we will bring you the details. andhe scene is the founder

ceo of a privacy detecting search engine that had more than one billion searches last year, will join us. investor racing about $750 million. we will show you what types of investments he is likely -- likely to make. money from barbra streisand, sylvester salon, cindy crawford, he will be joining us to share his best tips. we will take you to d.c. for the first time in 17 years, investors can buy a new slice of debt. the top treasury -- top treasury officials. what they mean for the death market. there is risk. >> we will find out more from the assistant treasury secretary for the financial markets,

responsible for the new two year floating-rate notes. the first in 17 years. good to see you and thanks for the time. what is the rationale? at this time do taxpayers need the instrument out there? >> a good question. the way we thought about this is it will help us manage our .aturity profile we have been working on this for the better part of three years. it will help us manage the debt in the coming years. this came back at the most prominent example. >> bond market participants told you two ears will make a difference why? makeep in mind, we want to sure at all times we are managing our own interest rate risk. a floating-rate will help us do that. it will help us replace our bills.

at the same time, we are getting a longer security. >> explain this to business people. if i am not jumping in and out on a regular basis, why does this manage -- matter. at a time when there is a whole lot of debt out there and more will be coming. >> the broader debt management, taking a step back, we were .orced to do a lot of debt it fell to a multi-decade low. we have beenme, cognizant of the fact that today, the average securities closer to $70. this has been a lot of progress. we view it as important because it allows us to more accurately manage our debt and, at the same time, not have to come back to

the market. risk of aere is a rising rate environment, why not devote all of your time to low rates? >> we are doing that a lot already. a few years ago, prior to the financial crisis, we issued $24 million. and this year, it will be closer -- we're are issuing a lot of long- term debt. we have not changed that. as deficits have improved, we have been trimming back a lot of the securities. we are trying to churn out as much as we can. better this have been after a year or two with the discussion of race rising?

>> i cannot comment, but we take a long-term view. this is more of a strategic move for us to buy flexibility. the first option but he finalized thing today. what is the sense you already have about the level of interest? levelss trading at tight are the initial feedback we have gotten is very positive. there will be a lot of demand for the product. you about onesk other aspect. you introduce this project about acer debt uncertainty. the deadline is late february. what is the risk there is not enough time? are we heading for a collision course that will upset debt markets around the world? >> last year positive experience , it was damaging. there is a lot of uncertainty for financial markets.

there were certain investors that did not want to take treasury collateral. that is a damaging thing. havee secretary said, we -- the value of the extraordinary measures are just not as much. the only way to get out of this is for congress to raise the debt ceiling. >> can you reassure those watching that the administration and congress are talking about this now? are they happening? >> the secretary said earlier today from switzerland that both leaders from both parties understand the need to do this and to not pull our economy through this type of stress. >> having this cloud hanging over? >> we have to think a lot about liquidity leading up to the debt ceiling itself. in the near term we have had to

cut back treasury bills because we need to stay below a certain amount of cash, leading up to february 7 debt ceiling date date. here, as this new product is out there, you can buy yourself these two-year floating treasury notes. >>. peter cook joining us there from d.c.. matthew rutherford with him as well. from macro to specific, our next guest is one of the most prolific investors in new york city. he is the managing director, former ceo of the huffington post and special partner. he is with me now. glad to see you. what is the most interesting thing you are seeing in new york city right now in tech? specialties, but we are also seeing new york move

into other kinds of areas. >> such as? >>. marketplaces. education, and these are areas where the new applications are unveiled from the same technology you have in your pocket. >> i will read you stat. you know these already but they caught my eye. last year was a big year, mostly of twitter. 35 million dollar valuation it has. $1 billionnerating or more -- or more. it is a lot. is this is good. >> it is about time. wheret through a drought there were very few exits. because the stock market

was so bad, it did not seem like the right time to go public very >> that is right. the only exits they had was through an acquisition, and m&a on these the results markets, some of these were depressed. >> 10 firms generating this kind of money. sixow they did this list months ago. worthpanies here could be $1 billion. about half are already absorbed in the system. does this week to a bubble? are a lot of there startups. it is cheaper. it is some kind of bottleneck. and we have seen higher prices coming out of the market and a

lot of people speculate we are in a bubble. a bubble is when the balloon has left.and there is nothing the companies have real value and real revenues. with thisy companies kind of valuation, whether it is official or not, you think, i understand what the company does, it has revenue, and i do not have to figure out how they monetize this a few years down the line. >> that is basically what you do. it takes about seven years for a company to be born. it is a long time. it is a waiting time we are waiting -- willing to take. >> you feel there are enough businesses that will have earnings and profit growth, so a your mind, there is not bubble forming. >> not a bubble like we saw in

the year 2000. >> ok. something we were just talking about, what is it and why are you investing in it? >> we felt strongly this is the era of animals, that there is a highlighted sense that animals are really important to us, not only pets, but livestock. we created a site all about animals . some of it is animal rights and some follows what is going on. this week, we saw an unfortunate dolphins in japan. this is something really important we have to pay attention to. >> there was a documentary that shed light on that that got a lot of attention for good reason. what is the difference between investing and partnering with a good company?

incubate a dobro -- dodo is a good example. the head had been thinking about the idea for a number of years. we put out the money. , and then the product we brought in additional investors. >> hold a thought. we will continue this conversation in two minutes. more in just a moment. we will also be bringing you new details and a new report from nsa. privacy and security, civil liberties, all front and center. and ceo willnder be here. ♪

>> there is a new report out from the nsa. it says phone data collection programs are illegal, have ,rovided minimal health -- help

and should be stopped. >> we take the view the program is not authorized by statute. demonstrated efficient effectiveness on a permanent basis. >> margaret has been following this story. what is the reaction from the white house and lawmakers? >> president obama last week announced his view the program and should continue, although he is asking for modifications from congress. he is asking them to change the way the data is stored and take it out of the hands of the nsa. he is not questioning the legality of the program. today, the white house continues to defend white house acquisitions against what the board said. disagreesstration with this conclusion that the metadata program is illegal.

>> i just misspoke. the report was not from the nsa. it is from this very specific board. does the board have any power? is illegal, but what can they do about? >> that is right. it is an advisor board. toy do not have any power stop the program or make president obama change his mind. president obama knew exactly what the board would propose because he met with them prior to going ahead last week with his own conclusions. he announced the conclusion last week for the conclusions. it is worth noting this was a 3- 2 split decision on this on the specific question of the legality of the program. they work for the bush administration. this may water down some of the impact of the report. >> as far as an effect on business, are there any you can spot right now? even though there is no binding legal impact, it could give more momentum both to

companies that want to minimize, if they're forced to participate, in the nsa programs, and also to lawsuits, of legalcations vulnerability on carriers like verizon or at&t. it is worth noting at black of the computer association said today he thinks this report could be significant in terms of limiting records collections and creating more transparency going forward, if only because of the political power. sayingort is also internet companies in their efforts to get more disclosure could be benefited. >> we will continue the conversation with our next guest. in the meantime, thank you very much. with more on privacy and security, we bring in the ceo and founder of a search engine that does not track your activity. the founder and ceo is is me now from philadelphia and also i know you started

the company in 2008. it was chugging along. last year, you had more than a billion hits. the privacy and security has become such a big topic, you are saying crazy growth. >> that is right. we did over one billion searches , double from a year before. we expect about a similar growth if not more as more people realize we are a private alternative or you can get great results and great privacy at the same time. >> as far as the technology, how are you pulling this off? it is simpler. we have servers all around the world, mainly for speed, so people around the world can get fast. when you search anything on the internet, your computer is automatic resending over the private information that can tie back to you. away andall of that store nothing so that you are completely anonymous.

this because doing you are not selling ads. doesn't so you're selling ads. how are you making money e >> we do it in the same way google does and it is just a myth you can track people just to make money on web service -- search. the reason why google and the other search engines need to track you is they run all sorts of other properties. in google's case, things that are harder to monetize. they run larger ad networks and they need the information to target ads on you across the internet. if you ever wondered why the ads are following you around the internet, that is why. one of the surprising effects about the affair is how little most people seem to care they're being watched and spied upon.

that is particularly true with young people. i speak with my children. they say, well, i am not doing anything wrong. do you think they'll know more about what is going on? >> it is changing. it is worth noting the government surveillance, as serious as it is, and it is interesting, the report, there are many other reasons you do not want to be tracked that are equally good and more prevalent. most people started to notice it and find it annoying. people do not really know or notice yet, but they will, that they are getting charged higher prices based on their data profile when they do retailers across the internet. people realize on a per person basis, they are getting treated differently and it affects their bank account. be more and more concern. >> on about the idea people can access google? you need a certain level of

sophistication, but they put in some sort of identity and a miser but there are ways to get around the google system. >> it is interesting. this gets technical. every time a company attempted or someonee data else attempting to anonymize on top of it, it always has been found to not be overtime. the only real way to be anonymous is to go with someone who does not track you at all and does not store the personal data. >> we thank you as always for your time. the founder and ceo of duck, duck, go. and we are back in two minutes. ♪

>> it is 20 minutes past the hour. turning out to be a relatively ugly day for the stock market. by 204 points. really picking up some steam to the downside as we head into the close of trading. also, the s&p off by about 21 points. we had the weaker read on manufacturing, falling below the pivotal level. you had weaker than estimated home sales for december. we are also watching the treasury market because the stock is still lower and somebody -- money has got to go somewhere. treasuries are on the rise. pushing to a seven-week low. you could blame it -- jobless claims arising last week more than forecast. deals now trading below the levels where the fed voted to

taper last month. in the currency market, take a .ook at the euro here 2.5 year rises. optimism over europe economy. we are back in 30 minutes. more "money moves" is next. ♪

♪ >> we focus on innovative alternative investments. i'm deirdre bolton. legendary investor peter thiel raisingounder fund is 750 million dollars, a 20% increase over the previous pool. a bloomberg news reporter is with me now with details. known as a paypal alumni come but also having written the first check to

facebook. how as it for -- formed relative to the industry e >> i heard each of the previous funds have been in the top quartile. i have not seen the numbers. veryeir funds, they are happy with their performance. they are continuously able to raise more money. relatively new to the venture industry, being able to raise that fund < two years after your easyous fund is not an feat, especially at a time with consolidation in the industry. act out ityour take is true, peter teal is able to lot of money quickly. part of that is his reputation. is he doing something else? >> they are clearly looking at the numbers in great detail and are finding great results. money begets money and that is how the funds go. all the better for him. orwhat other selling points

competitive advantages does he have, especially when he is with olderor capital and more established competitors? >> one of the things they're known for is they are really willing to do the hard stuff, the stuff that it takes a lot of money to fund, and chances of success is extremely slim. spacex is a good example. elon musk. just willpitalists not get all that excited about what the outcome will be in the market. -- iding the willingness to do these challenging business is a selling point. peter is on the board of facebook. any company that sees itself

wanting to be tied in with the face of network, increasingly any company on alexei, would love to have peter involved in the company. >> there are a number of new funds. also brand-new, i will put myself in that lot. it seems there is a new generations -- generation of funds challenging the older funds. e >>u see it that way obsolete. it is very clear where the numbers are. there is a handful, maybe 10 firms, and a couple in san francisco, that are still doing very well. dozens ofe are just them that have been around for a long time. entrepreneurs do not know about their history so it is not a big deal. thatee firms like yours moreeally, they are much

attractive to entrepreneurs given who they have worked with. if you waste -- if you are a you want totart up, work with the people who see the other deals. >> thank you. as always, thank you for joining me. keep him a company here. we have to get you down to d.c. because we have breaking news on the new jersey governor, chris christie. peter cook is standing by. republicans are getting a subpoena. >> call it an escalation of bridge gate. now that ant right attorney representing chris christie's's reelection campaign confirms the two organizations have received subpoenas from the u.s. attorney's office in new jersey. an escalation here of what was already being investigated by a

panel in new jersey, the u.s. attorney's office is trying to find out if any federal laws were broken in the whole story about delays on the george washington bridge and the entire controversy that has surrounded the governor. sending subpoenas to the christie campaign. they are intending to cooperate with the investigation. >> thank you. joining us there with the very latest on bridge gate with chris christie. we will turn things back more locally here and speak with a money manager who helps his clients to manage their money. , a seven billion dollar asset management firm with clients such as ivester

stallone and cindy crawford. he is with me now. great to see you. apologies for the weather. helpare you doing now to your clients manage their money e >> we are trying to do the same thing, rolling out our overweight in bonds. that has been successful for a long time, into growth areas, especially equities. >> to what extent are you and your clients concerned? do you have people calling you saying, the stock market cannot go up anymore. what are my choices? >> i have not had complaints. clients are very happy. people want to know what we will do this year. we tell people things will be good this year and not great like last year. >> ok. some of the other, for example, alternative strategies you are considering. i do not know if you're looking

into mutual funds, hedge funds directly, because you're high net worth individuals have the capital and can afford to put it away for a while, what are they asking you about? class they want to know where else to invest, but they do not want to take more risk. ,he things we are looking at the pipelines and storage areas, we are looking at large cap stocks, the new nifty 50, johnson & johnson, apple, names like this, that we can put away for three or five years. >> i know you're on the west coast and i am curious. we have been following a lot of real estate stories. real estate seems to be making a comeback. to what extent do people in the entertainment and music industry have an appetite for that? >> they have got a huge appetite for houses.

the entertainment industry is overweight. for people toal have 50% or more of their net worth, whereas average might have only 25 or 30. it is good housing is coming back. the value in some areas of los angeles are at all-time highs. there is a big demand. we have foreign buyers coming in. that is working out well. it is interesting to note in the last five years, household wealth has increased $30 trillion. >> for a fault -- small percentage -- percentage of the population, which you serve. you are in the right business. we thank you for stopping by. the founder and senior managing bel air advisers. we are back in just two minutes. representing some of the world's developersmmers and

and engineers. we are back in just a minute. ♪

a we were just speaking with bel air-based money manager about how he helps famous clients manage their money. we will continue this scene with our next guest, bringing a hollywood model to tech. it represents the best designers quickgineers, in need of access. he is with me now. he is a cofounder with me, as is the tech extraordinary. it is great to see you. you have and coders and programmers and engineers, with head shots the way i think of with actors and actor -- actresses. >> yes. add a little flair to it.

we consider these programs to be talent in the same way you would consider an actor to be talent. it is looking after their interest. theory, you are sparing people a bunch of uncomfortable conversations. nobody wants to talk about money or expectations. probably the two main things you need to know. >> absolutely. you want to set up expectations. money is important. properlyto communicate and we get into the middle of that and ensure the customer, the client, is super happy. properly.ns are set >> that is a lot of people to keep happy. >> how do you keep the companies happy? your wet -- your website

says -- if i were an elite encoder, i wish i were, how do you keep the companies happy in that situation when you're bringing someone in and because they are freelancers, it is not a permanent assignment. you are bringing them in for an emergency job and out they go. is that the idea? >> yes. sometimes it is emergency and sometimes it is not. the key is to medication. and instillunicate that philosophy in our and coders as well. we want to make sure they are aware they are entering someone else's domain. that is the main thrust. >> demand for situations like that, which puts in teams of people and -- teaches the employees already they're the best practices and gives them tools so when they leave, they know what to do.

there is a lot of demand for this? >> there is. it is more of a consulting firm. that is not what we are doing. we put teams in place sometimes, but really to fill a specific bulge, whether already in the tech bulge. we will come in and put the team in together and build that out and then handed off. meant to be more tactical and not long-term. we have had people in for quite a while at companies. >> looking at the stats here, you have 85 freelancers, but more than 800 in a wait list that you are screening. >> we have been incredibly fortunate with the press. it has brought forth programmers from all over the world. because it ising a self-selected group of people. these are very sophisticated individuals who felt old enough to actually apply.

we painstakingly have gone through the list. you tolong did it take figure out which candidates you want in your database? >> it can take months. it is a three-pronged approach. myself and my other partner are vetting personality, and we want to make sure people can code at a high level and that they can transact. >> stay with me. a quick break to take. all about the search for the tech talent when we come back. ♪

>> we continue now on the topic of the for -- search for tech talent. with me now, cofounder of management, prima hollywood agency model to the tech field.

saw tenfoldell, you growth. i am looking at some of your stats last year. out $2.5 paying million to 85 freelancers or their work last year. what kind of growth you you expect? >> probably about the same. we are only limited by our capability of editing -- vetting quality people. the demand is there. we will hire staff and maybe our ourselves to add capacity and demand there. >> he worked at a company absorbed and purchased by live nation and you have this entertainment background, as do your partners. now, one of your clients. havetrom, ebay, you serious clients using your service. >> yes. we have had startups and fortune 1000 companies.

we were talking on the break that every company needs tech talent. are finding.we plain people are coming out of san francisco in demand that we have companies all over the globe looking for talent. >> out of curiosity, when did the light go off in your head that you're used to work in the entertainment model and this applies to technology? at what point did you figure it out? >> six years ago that we said, there is a need and at that time , we did not have an idea of how we would go about it, so we kept going back to it because we were dealing with freelancers themselves. then we sort of said, let's just do it and find somebody to represent. the first person we represented has become our tech partner, and he is the third part of the company. >> where else are you seeing demand? i know people who run hedge funding firms and pretty

soon, they are getting all sorts of other clients. they will hit it off against a hedge fund because they are so adamant again -- about getting the best technology. >> we're been approached by that. the fundamental issue we run into is we have a lot of proprietary stuff. they do not really want freelancers so it has not been a great fit in that regard. there is automotive and we are seeing demand coming out of detroit. every sector you can imagine is having some sort of a need or increased need for talent. >> and no real ability to find it easily. >> we found some of the companies try to vet their own talent and it is difficult. a painstaking process to find someone who really knows what they're doing. here for andwe are that is the goal. >> thank you very much. fun to have you with us here.

joining us there, the cofounder of tax management. we are back in a minute. ♪

liu'sight, betty conversation with two famous philanthropists. bill gates, and the former new york city mayor. hear what they have to say about eradicating poverty and disease. the conversation comes your way this evening only on bloomberg

television. tomorrow, we highlight to care.com. the founder and ceo will join us from the new york dock exchange. it is a care marketplace. find out from the founder how she thought about the idea. in the meantime, it is 56 minutes past the hour. it is time for on the markets. alex is with me for more. what do you see? >> an ugly day. the lows are -- off by only 20 points. still down triple digits, down 187 points and the nasdaq is off by 35 points. s&p -- heting out the says the trend is still neutral and it is a one percent selloff.

it is now time for today's report. it is have an outside really cold. is that good or bad for retailers? that is the question. -- more, i am joined by what happens when it is four degrees and i am called echo -- cold? this is bad? >> it is bad. if it is 10 degrees, you do not want to step outside. you want to be next to a hot fire. >> right. the sales we have seen are pretty dismal. what were standouts for you? >> they were disappointing. you heard from a lot of retailers, target and ears. urban outfitters, american eagle . all sales are bad. many reduced outlook. january, as we move into it,

there is a lot of inventory that needs to be cleared there if it is not because weather is still into you will have it february. >> inventory, a lot of promotions area is 70% off could not draw you over the holidays, what will it look like echo exit is hard. find it as an to excuse. you needed to get warmer. what you will see is the spring inventory. if the weather spaces coast -- this cold, you will not go off for a dress for sure. macy's --s like a >> you have seen the retailers struggle all last year. there is a reason. the unemployment rate is very high, and we also have a lack of new fashion. there is no major fashion trend. you have both of those factors and you also have the retailers very promotional. they are killing the markets.

>> what about the hire and? >> the high and is doing great. the reason is because they very much in a fit. you have seen stock markets do so well that the retailers are doing fine. then you have the best in class retailers. macy's had a great quarter because they have strategies in toce to get the customers shop. >> i like the sales and i shot quite a lot there over the holidays. "street smart" is up next. ♪

♪ ♪ >> we got a big selloff underway live from bloomberg headquarters in new york, i'm trish regan. >> i'm mark crumpton, welcome to "street smart" on this thursday. >> we're seeing a lot of downside. here we are just about an hour from the close. we have the s&p and dow off better than 1%. a pretty down day all around. the nasdaq down almost a percent. we have a lot to cover. on the agenda, we're talking about h.l.f., the drama playing out on capitol hill. shares are plummeting